Securities Lending

Leverage Your Investment Portfolio

Borrow against your shares, ETFs, and managed funds. Access lower rates and keep your investments growing.

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What is Securities Lending?

Securities lending (also called margin lending or portfolio lending) allows you to borrow money using your investment portfolio as security - without selling your investments.

💰

Lower Interest Rates

Typically 1-2% lower than unsecured loans because your portfolio is the security

📈

Keep Investing

Your investments stay in the market and continue to grow while you access the equity

💎

Tax Benefits

Interest may be tax-deductible if used for income-producing investments

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Flexible Use

Use funds for property deposit, renovations, new investments, or business capital

How It Works

1

Your Portfolio is Assessed

Lender evaluates your shares, ETFs, and managed funds. Blue-chip stocks (ASX200) typically get highest borrowing ratios.

2

Calculate Your Borrowing Power

You can typically borrow 50-70% of your portfolio value (called LVR). More stable stocks = higher LVR allowed.

3

Loan is Secured Against Portfolio

Your investments stay in your name and continue earning dividends/returns. Lender has a security interest only.

4

Access Your Funds

Funds transferred to you. Use for any purpose - property, investments, business, or personal needs.

Typical Rates & Terms

Securities Lending

4.5% - 6.5%
  • ✓ Portfolio as security
  • ✓ Interest-only option
  • ✓ Tax-deductible interest
  • ✓ Keep your investments
VS

Personal Loan

8% - 15%
  • ✗ No security required
  • ✗ Must sell investments
  • ✗ Higher interest rate
  • ✗ Non-deductible interest

Who Can Use Securities Lending?

✅ Ideal For:

  • High-net-worth individuals with substantial portfolios
  • Investors wanting to leverage without selling
  • Property buyers needing a deposit
  • Business owners needing working capital
  • Those with $100k+ in eligible securities

📋 Requirements:

  • Portfolio value: Typically $100k+ minimum
  • Eligible securities: ASX-listed shares, ETFs, managed funds
  • LVR limits: Usually 50-70% of portfolio value
  • Income verification: Proof of ability to service loan
  • Portfolio diversification: Better terms for diversified holdings

Important Considerations

⚠️ Market Risk

If your portfolio value drops, you may need to provide additional security or repay part of the loan. This is called a "margin call."

📊 LVR Monitoring

Lenders monitor your LVR daily. If it exceeds limits (e.g., goes above 70%), you'll need to top up security or reduce the loan.

💡 Best Practice

Borrow conservatively (e.g., 50% LVR instead of 70%) to avoid margin calls during market volatility. Keep a cash buffer for emergencies.

Common Uses for Securities Lending

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Property Deposit

Access funds for a property deposit without selling investments. Keep portfolio growing while entering property market.

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Investment Opportunities

Leverage portfolio to invest in new opportunities. Potential to amplify returns (with higher risk).

💼

Business Capital

Fund business expansion, equipment, or working capital at lower rates than business loans.

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Renovations

Fund home improvements without selling shares or taking expensive personal loans.

Unlock Your Portfolio's Potential

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